Lake Austin Properties I, Ltd. – Lake Austin Reserve – Grande Palisades, Magnolia Woods, Avalon, and Twin Lakes

Preconstruction Contract Termination and Deposit Return Litigation

 By John L. Urban, Shareholder, Urban Thier Federer & Jackson, P.A.

Lake Austin Properties I, Ltd.

Grande Palisades, Magnolia Woods, Avalon, and Twin Lakes:

Urban Thier Federer & Jackson, P.A., is accepting clients seeking representation against Lake Austin Properties I, Ltd.’s Grande Palisades, Magnolia Woods, Avalon Resort, and Twin Lakes developments at Lake Austin Reserve (the firm is not accepting new clients in the Palisades phase of the Lake Austin Reserve development – which is different from the Grande Palisades phase).

Many of the causes of action/claims have strict statutes of limitation/time limits which start as early as the date that the purchaser signs the purchase agreement. As time passes, purchasers will lose, if they have not already lost, certain rights.

Grande Palisades:

It appears that Lake Austin Properties I, Ltd’s financial condition is deteriorating. As of April 2009, there has been no further significant construction activity in the Grande Palisades phase. Construction of the Magnolia Woods and Avalon phases has still not been started. Lake Austin Properties I, Ltd.’s construction lender has been taken over by the Federal Deposit Insurance Corporation (FDIC) and the new owner of the main mortgage and note, filed a foreclosure lawsuit on October 9, 2009, seeking to foreclose on the Lake Austin Reserve land and buildings and claiming that Lake Austin Properties I, Ltd., owes it $151,712,218.79.

The Grande Palisades consists of buildings C1 – The Grande Palisades C1, a Condominium; C2 – The Grande Palisades C2, a Condominium; and C3 – The Grande Palisades C3, a Condominium, at Lake Austin Properties I, Ltd.’s Lake Austin Reserve. Most of our clients signed an Agreement for Sale contract, with Lake Austin Properties I, Ltd., named as the seller, in 2005 and another in 2007. It appears that the main reason for the 2007/replacement contract was an effort by Lake Austin Properties I, Ltd., to correct certain deficiencies in the 2005 contract. The main deficiencies being that the 2005 contract violates the Interstate Land Sales Full Disclosure Act (ILSFDA) and that Lake Austin Properties I, Ltd., realized that it would not be able to timely complete the Grande Palisades phase of the development. There appear to be multiple viable independent claims against Lake Austin Properties I, Ltd., in relation to the Grande Palisades phase including, but not limited to, breach of contract, violations of Florida Statutes Chapter 718 (Florida Condo Act), violations of ILSFDA, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), and other claims.

On March 20, 2009, a Certificate of Occupancy was issued for 188 of the 304 units that comprise The Grande Palisades C1 building. No Certificate of Occupancy has been issued for the other 116 C1 units or for any units in buildings C2 and C3 of the Grande Palisades. Especially for purchasers with units in building C1, it is critical that they take immediate action in order to protect their rights.

Magnolia Woods:

Magnolia Woods Resort, a Condominium, is a separate phase of the Lake Austin Properties I, Ltd.’s Lake Austin Reserve development. The Magnolia Woods Agreement for Sale contract, with Lake Austin Properties I, Ltd., named as the seller, appears to blatantly violate the Interstate Land Sales Full Disclosure Act (ILSFDA) and there appear to be multiple viable independent claims against Lake Austin Properties I, Ltd., in relation to the Magnolia Woods phase including, but not limited to, breach of contract, violations of Florida Statutes Chapter 718 (Florida Condo Act), violations of ILSFDA, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) and other claims. It appears that most of these contracts were signed in the 2006 timeframe.

Avalon Resort:

The Avalon Resort, a Condominium, is a separate phase of the Lake Austin Properties I, Ltd.’s Lake Austin Reserve development. The Avalon Resort Agreement for Sale contract, with Lake Austin Properties I, Ltd., named as the seller, appears to blatantly violate the Interstate Land Sales Full Disclosure Act (ILSFDA) and there appear to be multiple viable independent claims against Lake Austin Properties I, Ltd., in relation to the Avalon Resort phase including, but not limited to, breach of contract, violations of Florida Statutes Chapter 718 (Florida Condo Act), violations of ILSFDA, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), and other claims. It appears that most of these contracts were signed in the 2006 timeframe. As time passes, purchasers will lose, if they have not already lost, certain rights.

Lake Austin Properties I, Ltd., appears to have primarily targeted and marketed these properties to residents of the United Kingdom. Urban Thier Federer & Jackson, P.A. currently represents 100s of residents of the United Kingdom who are seeking to terminate their pre-construction contracts in this and other developments throughout Central Florida.

The Florida Bar, which regulates all attorneys who are licensed to practice law in the State of Florida, provides strict guidelines which prohibit us from referring to past successes or results obtained for other purchasers in this or other developments. However, we can provide you with this and other information in response to any inquiry.

We encourage all purchasers to interview any attorney that they may be contemplating retaining and to ask that attorney for their experience, record in this area of the law, number of cases taken to final judgment, number of cases affirmed on appeal, number of attorneys in the firm, firm staff, resources, etc. We sincerely believe that purchasers should not retain an attorney or law firm until they are confident that 1) the law firm has the experience and resources to represent their best interest and 2) they fully understand the law firm’s litigation strategy.

With offices in Orlando, Florida, and Munich, Germany, Urban Thier Federer & Jackson, P.A. continues to assist buyers throughout the United States and European Union countries in terminating their pre-construction purchase agreements.

Current Areas of Activities

If you are a buyer/purchaser who is a party to a pre-construction purchase and sale agreement, we encourage you to consult with this law firm or another law firm and explore your rights and options. Urban Thier Federer & Jackson, P.A. can provide you with a consultation and, in many instances, can represent buyers on a contingency fee basis (clients are responsible for costs). Urban Thier Federer & Jackson, P.A. has successfully represented and/or currently represents buyers in connection with housing developments and condominium projects throughout Central Florida – including, but not limited to, in connection with:

-The Avalon Resort, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Bahama Bay II, a Condominium, Kissimmee, Osceola County, Florida, by Maesbury Homes, Inc. (Condominium Development)

-Fairview Grande Condominiums, in Orlando, Orange County, Florida, by Lake Fairview Development, LLC (Condominium Development)

-Grande Palisades, buildings C1- The Grande Palisades C1, a Condominium, C2 – The Grande Palisades C2, a Condominium, and C3 – The Grande Palisades C3, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Lake Buena Vista Resort at Lake Buena Vista Drive, Kissimmee, Osceola County, Florida, by Lake Buena Vista Resort, LLC (Condominium Development)

-Magnolia Woods Resort, a Condominium, in Orlando, Orange County, Florida, by Lake Austin Properties I, Ltd. (Condominium Development – a phase of Lake Austin Reserve development)

-Mona Lisa at Celebration, a Condominium Hotel, in Celebration, Osceola County, Florida, by Mona Lisa at Celebration, LLC (Condominium Hotel Development)

-The Plaza at Solaire in Orlando, Orange County, Florida, by Plaza Court, LLP (Condominium Development)

-The Peninsula at St. John’s Center, in Jacksonville, Duval County, Florida, by St. Johns Phase 2 LLLP (Condominium Development)

-The Point Orlando Resort Condominium, in Orlando, Orange County, Florida, by Seymour International, Inc. (Condominium Hotel Development)

We encourage you to explore our websites – Urban Thier Federer & Jackson, P.A. (Florida Office) and Urban Thier Federer & Jackson, Rechtsanwälte (Munich Office) – to learn more about Urban Thier Federer & Jackson, P.A. and its attorneys and practice areas. Urban Thier Federer & Jackson, P.A.’s representation of buyers includes litigation of cases in state court, federal court and arbitration proceedings. We encourage you to become informed of your rights and options. You should also ensure that any law firm you consult or retain to represent you has the experience, resources and ability to take your case through trial and appellate courts, if necessary.

Please note that we do not represent you and cannot take any action on your behalf unless and until we enter into a formal written Legal Representation Agreement and any cost deposit or retainer has been cleared into the firm’s attorney trust account.

Filed under the Real Estate Transactions, Closings and Litigation category.